Power Relations, Inequality and Poverty a Concept Paper for the World Bank

5 Overview 'Power relations must figure significantly in explanations of poverty and inequality.' This paper examines that statement and concludes that relations of power underpin inequality and are among the critical variables that cause and keep people in poverty. It, therefore, underscores the importance of integrating 'power' into analyses of inequality and poverty. The paper's main objectives are to: (a) Highlight some of the key ways in which power influences inequality and poverty; and (b) Provide guiding principles and early directions for future longitudinal research on the relationship between power and poverty. Correspondingly, it will: ! Synthesize arguments on the relations between power, vertical and horizontal inequalities, and poverty; ! Use theoretical and empirical data to provide explanations of the links between power, inequalities/disparities and poverty – emphasizing crucial factors such as the role of history, institutions, economic opportunities, factor endowments and ideology – and to identify critical areas for data collection; and ! Suggest subjects for future research. The paper is not intended as a theoretical treatise on power. Instead, it uses case examples to highlight key features and to emphasize the role of power in inequality and poverty. OUTLINE The paper draws substantially on selected major publications. Section 1 outlines the case for focusing on power. It suggests that there is a relationship between power, poverty and inequality; that by not focusing explicitly on power, dominant methodological approaches fail to analyze one of the critical variables that both keep people poor and undermine development initiatives; and that poverty analysis would profit from combined methodological approaches and an explicit focus on power. Section 2 reviews some of the major approaches to poverty and inequality. It then uses debates on the policymaking process to (a) identify key dimensions and features of power and (b) emphasize that empowerment of the poor also depends on external accountabilities. Section 3 uses a case study of Ceres, South Africa to focus on how power performs in the domestic arena. It expands on the themes outlined in Section 2. Section 4 summarizes the main arguments and highlights key areas for future research. The Annexes focus on the cultivation of inequalities and unequal power relations in Uganda, the misuse of power and the consequences for the poor, the legacies of power, and the prospects for change. They highlight the following themes: identities, power and poverty; power, poverty and gender disparities; economic power, politics and class formation; …